GOLD / SILVER
While the lift from the GameStop incident came and went with silver prices exploding and then imploding, we still expect 2021 to see silver prices to settle into an uptrend. It should be noted that the massive run-up in silver prices on Monday was accompanied by a single day massive inflow of 34.6 million ounces into Silver ETF’s.
PLATINUM / PALLADIUM
While the palladium market held up impressively to the broad-based liquidation wave seen in the rest of the precious metal markets yesterday, we suspect that was at least partially the result of unwinding of long platinum short palladium spread trades. While the platinum market saw only a minimal inflow to ETF holdings yesterday of 649 ounces, and the year-to-date expansion of the holdings is only 1.1%, the platinum market yesterday largely sidestepped the massive liquidation seen in gold and silver prices.
Like other metals and industrial commodities, copper is facing suspect demand conditions with the copper charts also favoring the bear camp. However, the copper market continues to respect the $3.50 level increasing the credibility of that support pricing.
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